News and Information from Bond Buyer

Week Of July 6 Issuer St Description Amount

ALABAMA

Government

One day after scrambling to cover a $634 million teachers’ pension payment, Chicago and its public school system warned of the dire impact that looms if the state doesn’t either take over the district’s pension fund or cover a big share of the cash-strapped district’s contributions.

A one-month, $2.26 billion budget to fund essential services in Illinois amid an ongoing stalemate over a fiscal 2016 budget failed in the House Wednesday.

Moody's Investors Service has downgraded the Commonwealth of Puerto Rico's general obligation (GO) and guaranteed bonds as well as its senior lien Sales Tax Financing Corporation (Sr COFINA) bonds to Caa3 from Caa2.

Puerto Rico Gov. Alejandro García Padilla has signed a fiscal year 2016 General Fund budget for $9.8 billion.

Prices of top-rated municipal bonds finished weaker on Wednesday, according to traders, with yields on some maturities rising by as much as five basis points. There were no major deals on tap but traders were eying Puerto Rico developments -- and the clock, as the countdown toward the long holiday weekend began to tick.

Amid talks of Puerto Rico’s looming debt crisis, two senators plan to introduce companion legislation to a bill that would allow Puerto Rico to grant Chapter 9 bankruptcy powers to troubled public entities on the economically distressed island.

A Michigan emergency board Wednesday found that the state’s most populous county faces probable financial stress, a finding that is the first step toward a partial or state takeover.

The Puerto Rico Electric Power Authority made the full $415 million bond payment due Wednesday and promised to reach a comprehensive restructuring plan with its creditors by Sept. 1.

Standard & Poor's Ratings Services said it raised its underlying rating on South Blount County Utility District, Tenn.'s waterworks revenue debt one notch to A-plus from A.

Standard & Poor's Ratings Services said it raised its underlying rating to A-plus from A on River Place Municipal Utility District (MUD), Texas' outstanding general obligation bonds.

Vernon, Calif., an industrial Los Angeles-area city, plans to issue $110 million in taxable electric revenue bonds for interest rate savings and to eliminate exposure to interest rate swaps.

A report co-authored by Harry Markopolos, who offered unheeded early warnings of Bernard Madoff's fraud, said the pension fund of Greater Boston transit workers may be overestimating its value by up to $470 million.

Liquidity has declined from 2010 levels, especially in the Treasury market, according to the Federal Reserve's June 2015 Senior Credit Officer Opinion Survey on Dealer Financing Terms, released Wednesday.

Standard & Poor's Ratings Services said it raised its underlying rating and long-term rating to A-minus from BBB-plus on Senna Hills Municipal Utility District (MUD), Texas' general obligation debt.

Issuers need to disclose any and all bank loans so that investors and ratings analysts have a clear picture of the $60 billion market, panelists said at a Bond Buyer event in Chicago.

The new spokesman for Atlantic City's emergency manager says all options remain on the table for the troubled city, including bankruptcy.

Assured Guaranty and National Public Finance Guarantee could both withstand defaults on Puerto Rico debt with no change to their capital adequacy, S&P said in reports this week.